Mordechai Yavneh, Founder and Portfolio Manager at Focus Capital, returns to the podcast to discuss how the Silicon Motion Technology Corporation (NASDAQ: SIMO) / MaxLinear (NASDAQ: MXL) deal fell apart.

Focus Capital's research site (with SIMO deck): https://focuscapitaladvisers.com/research

Mordechai's December 2022 $SIMO pitch on YAVP: https://youtu.be/f--RrIG1fAQ

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:46] Update since Mordechai's $SIMO pitch with Andrew in December 2022; how $SIMO / $MXL fell apart

[6:49] The four reasons $MXL said they were able to back out of the deal

[13:53] Why $MXL does not really have the right to terminate the deal

[22:37] Back and forth on the necessity for $MXL having to close the deal; how the $MXL / $SIMO situation compares to Twitter case

[31:14] Likely outcome for $SIMO if they pursue arbitration; potential outcomes for $MXL

[35:33] Understanding the difference between "Specific Performance" vs "Expectation Damages" and does breaking these deals set certain precedents?

[40:03] What is the material adverse event $MXL is referring that $SIMO experienced

[45:55] $SIMO fundamentals

[53:04] What $SIMO is seeing in the 2nd half and how their business may perform going forward; Mordechai's 3 year outlook

[1:00:23] What Mordechai thinks earnings for $SIMO looks like in a mid-cycle, normalized environment

[1:07:42] Is $SIMO a seller again or $MXL offer such a big premium, that $SIMO has to take it?

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